Susan, I don't profess to know anything about diabetes although with my condition (haemochromatosis), I am prone to it. I have found we just don't tolerate sugars and starches very well. So I eliminated them from my life as much as possible (sometimes have to, to be polite!). I lost heaps of weight quickly and discovered I really did have a waist.
I think Diabetes 1 has to have some sugar but I don't think Diabetes 2 does. Correct me if I am wrong. I eat protein with every meal (even snacks which I need less and less) and lots of greens and cauliflower. One very seedy, nutty bread slice in morning as fried egg without bread is a bit ucky. Other than that all grains, potatoes, pasta, rice and sweet food of course, does not make it into my house.
I give my husband sweet potato and carrot because he is more physical than I. Sugar and starches are for people who are already slim and fit and run marathons. There is a product called slendier slim pasta and rice which satisfies my pasta crave and it is made of konjac root - no carbs, no protein, just fibre which we need to get rid of fat that is going into your intestines. Good oils are essential, i.e. xv olive oil, flaxseed oil, avocado oil, coconut oil (although some disagree about coconut oil - I eat heaps). Cook with it, pour on veges or pour xv olive oil on veges (there is a lemon infused one). Just remember starches are sugar in disguise. Now that I am slim, I do have some beetroot because it has very good benefits. Veges that grow under the ground are high in sugar. Eat fruits only in the morning so you can work it off during the day.
Regarding depression, my husband (who also has haemochromatosis) had severe depression for years after chemo and radium treatment for Hodgkins Lymphoma. He was not feeling sorry for himself for having cancer, he just could not help it. One day his gp thought of Vit B12 and tested him for it. He was very low and insufficient Vit B12 causes neurological problems. He was just not absorbing it from his food (generally meat, eggs, etc), nor the tablets I was giving him. He had to have injections of vit B12.
On the second weekly dose he came home humming and spoke to the "new" next door neighbour who had been there for two years for the first time. I said, I want some of that, but my blood levels of vit b12 were normal to high.
Ask dr to test you for Vit B12, Vit D, (drops work better), and an Iron Panel to see how much ferritin iron you have. Fatty livers cause high ferritin even if you don't have haemochromatosis. Reduction of sugar consumption will reduce your ferritin iron and mend your fatty liver (sorry for assuming, but most overweight people have a fatty liver). Another iron panel every 6 months will let you know if it is working for you.
So good luck to you with that and I hope it works for you.